Here's my new tutorial which goes through the process of creating wooly text, first we create text using hand drawn splines, add a sweep nurbs and using the scale graph shape it to look like the text is bulging slightly.Then we use hair to create the small fuzzy strands that give it that final touch.
More of my tutorials can be found on my website here matt-pearson.net/
And if you want to be notified when new tutorials are released join my newsletter (sign-up at the bottom of any of my website pages). or follow me on Twitter
Hope you enjoy.